Vipshop Holdings Ltd · NYSE:VIPS
Vipshop — Investor Presentation (August 2024)
25 slides from Vipshop's investor presentation, August 2024
Slide 1: Vipshop Holdings Limited Investor Presentation
Vipshop Holdings Limited Investor Presentation August 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Vipshop Holdings Limited (the “Company”) solely for information purpose. By viewing or accessing the information contained in this material, you hereby acknowledge and agree that no representations, warranties or undertakings, express or implied, are
Slide 3: China's Leading Online Discount Retailer for Brands
China's Leading Online Discount Retailer for Brands Branded Products at Exceptional Value 3
Slide 4: Business Overview
Business Overview 唯品会保密信息，未经许可不得扩散
Slide 5: Our Competitive Strengths
Our Competitive Strengths 1 High Market Demand and Great Growth Potential for China’s Online Discount Retail Market 2 Strong Merchandising Expertise Making us Partner-of-Choice Discount Retail Platform for Brands 3 Superior Customer Experience Fostering Highly Engaged and Loyal Customers with Strong
Slide 6: High Market Demand and Great Growth Potential for China's Online Discount Retail Market
High Market Demand and Great Growth Potential for China’s Online Discount Retail Market Driver 1: Strong Demand for Driver 2: A Massive Whitespace Discounted Merchandise for Brands to Monetize among Chinese Consumers Inventory Effectively • Brands have been continuously launching • More mature, rati
Slide 7: Our Unique Business Model
Our Unique Business Model Business Intelligence Highly Engaged and Loyal Abundant Popular Brands Customers ~1,100 AI-powered Merchandising Technology Professionals Innovation Partnership Service Brands Customers Great Value Merchant Optimized IT Platform Infrastructure Expanding High S Value Custome
Slide 8: Enhanced Merchandising Capabilities
Enhanced Merchandising Capabilities Deep Industry ~1,100 Merchandising Business Intelligence Expertise Professionals & Merchant Platform Merchandise Customer Insight Operation • Carefully select a rich and diverse • Predict consumer preferences and • Adjust product mix timely and selection of popula
Slide 9: Partner-of-Choice Discount Retail Platform for Brands
Partner-of-Choice Discount Retail Platform for Brands Specialized platform for One-stop inventory solution with monetizing inventory without proven sales efficiency and ROI brand dilution and pricing dilemma Reaching a unique group of high-value Diversified online and offline customers who care for
Slide 10: Optimized Product Mix
Optimized Product Mix Core Brands 900+ mass-market brands contribute to the majority Core of sales Business Differentiated Products Made-for-Vipshop customized products Fresh and Trendy Brands Emerging and most sought-after brands in a range of styles to attract younger customers New Opportunities H
Slide 11: Superior Customer Experience
Superior Customer Experience Trust Value Ease • Guaranteed product • Value-for-money • Treasure-hunting and gimmick- authenticity free shopping experience • Great prices every day • Buyer-selected branded • Best-in-class delivery service products • Affordable within desired price via industry leader
Slide 12: Highly Engaged and Loyal Customers with Strong Purchasing Power
Highly Engaged and Loyal Customers with Strong Purchasing Power Customer Profile Customer Loyalty Repeat Customers(1) Active Super VIP Customers ~75% Women FY 2023 75 MM FY 2023 7.6 MM % of total active 86% YoY growth 13% customers 70%+ Post-80s and -90s % of online net GMV(2) 45% Orders from Repeat
Slide 13: Quality Customer Base with Growth Potential
Quality Customer Base with Growth Potential Total Active Customers (in million)(1) China’s Online Shoppers(2) 915 MM -9.2% 3.9% 92.6 Vipshop 84.1 87.4 Cumulative Customers(3) -2.9% 275 MM 45.6 44.3 Vipshop Total Active Customers 87.4 MM 2021 2022 2023 2Q23 2Q24 Notes: (1) “Active customers” is defin
Slide 14: Operational Excellence Powered by Data and Technology
Operational Excellence Powered by Data and Technology Merchant Platform Best-in-Class Technology-enabled for Efficiency Gain Fulfillment Capabilities Business Synergy • A full set of processes and • Digitalized systems that • Best match products to tools to help brand partners enhance orders, logist
Slide 15: Visionary and Experienced Management Team with Proven Track Record
Visionary and Experienced Management Team with Proven Track Record Eric Ya Shen Arthur Xiaobo Hong Mark Wang Tao Feng Co-Founder, Co-Founder, Chief Financial Officer Chief Technology Officer Chairman, CEO Vice Chairman, COO • Innovative entrepreneur in • Innovative entrepreneur in • Seasoned expert
Slide 16: Our ESG Commitment
Our ESG Commitment Environmental Social Governance • Pledge to achieve carbon neutrality in • Continuous efforts in female • Ensure good governance as its own operations and a 50% empowerment, rural vitalization, compliant, disciplined corporate reduction in Scope 3 carbon emission community integra
Slide 17: Our Future
Our Future Solidify Market Leadership by Enhancing Merchandising Capabilities • Strengthen, expand and differentiate merchandise portfolio by fully leveraging our merchandising expertise to reinforce value proposition to brand partners Grow Customer Base and Increase Customer Engagement • Integrate
Slide 18: Financial Highlights
Financial Highlights 18
Slide 19: Solid Profitability Despite Macro Uncertainties
Solid Profitability Despite Macro Uncertainties Total Net Revenues Net Income and Net Margin Attributable to Vipshop’s Shareholders (Non-GAAP)(1) (RMB in millions) (RMB in millions) 5.0% 2019-2023 CAGR 14.9% 9.4% -11.9% 9.5% 117,060 8.4% 8.6% 112,856 8.1% 6.2% 6.6% 101,858 103,152 5.4% 5.1% 92,994 9
Slide 20: Healthy Gross Margin
Healthy Gross Margin Gross Profit and Gross Margin (RMB in millions) 45,000 23.6% 23.7% 23.7% 23.6% 22.8% 25.0% 22.2% 21.7% 21.7% 21.4% 22.2% 40,000 20.9% 21.0% 20.5% 19.7% 19.7% 20.1% 19.4% 19.7% 19.8% 35,000 20.0% 30,000 25,721 25,000 23,107 15.0% 21,285 21,616 20,680 20,000 10.0% 15,000 10,000 8,
Slide 21: Well-managed Operating Expenses
Well-managed Operating Expenses Fulfillment Expenses Marketing Expenses (RMB in millions) as % of total net revenues (RMB in millions) as % of total net revenues 7.9% 7.3% 7.8% 8.1% 12,000 6.8% 6.5% 7.0% 9.0% 4.2% 4.3% 3.6% 2.9% 3.2% 2.8% 10,000 7.0% 7,000 2.7% 4.0% 8,262 6,000 5,089 7,318 7,653 7,2
Slide 22: Sustainable and Profitable Business Model
Sustainable and Profitable Business Model Net Income and Net Margin Attributable to Vipshop’s Shareholders (Non-GAAP)(1) (RMB in millions) 47 Quarters of Consecutive Profitability since 4Q2012 9.2% 9.3% 11,000 10,978 10,956 10,934 10,912 10,890 10,868 10,846 10,824 10,802 10,780 10,758 8.4% 8.6% 10.
Slide 23: Strong Cash Position
Strong Cash Position (RMB in millions) 28,281 30,000 27,559 16,500 24,699 23,539 25,000 22,553 14,500 20,108 21,469 19,592 20,410 20,101 18,810 19,325 19,738 20,000 12,500 16,830 10,132 15,000 10,500 8,841 9,289 8,640 7,826 8,174 8,119 8,500 7,145 7,307 10,000 6,500 5,182 5,000 4,524 4,500 4,050 3,0
Slide 24: CapEx Summary
CapEx Summary (RMB in millions) Locations of Key Assets 5,231 Primary Usage: (as of June 30, 2024) • Shan Shan Outlets and other 3,579 3,103 infrastructure; Harbin • Construction of warehouses; Urumqi • Land use rights. FY2021 FY2022 FY2023 Shenyang Key Assets Highlights(1) Jinzhong Tianjin Taiyuan
Slide 25: THANKS
THANKS ime A £ u
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